The Royal Bank of Scotland Group has reached a final settlement with the National Credit Union Administration Board to resolve two outstanding civil lawsuits for US$ 1.1 billion, (around £846 million).
The settlements, involving its subsidiary RBS Securities Inc., relate to the two residential mortgage-backed securities (RMBS) cases.
RBS said the settlement amount is “substantially” covered by existing provisions as of 30 June 2016 and will have no material impact on the RBS Group’s CET1 ratio.
RBS continues to litigate various other RMBS-related civil claims identified in its disclosure, including those of the Federal Housing Finance Agency, and to respond to investigations by the civil and criminal divisions of the U.S. Department of Justice and various other members of the RMBS Working Group of the Financial Fraud Enforcement Task Force (including several state attorneys general).
The group admitted that RMBS litigation and investigations may require additional provisions in future periods that in aggregate could be materially in excess of the provisions existing as of 30 June 2016.
